US unveils new $1.5 trillion plan

[ginge51]

US Treasury Secretary Timothy Geithner has unveiled a comprehensive $1.5 trillion (£1.02 trillion) bank bail-out plan to beat the financial crisis.

Under the plan, the size of a key Federal Reserve lending program will be expanded to $1 trillion from $200bn.

In addition, a public-private investment fund of $500bn will be created to absorb banks' toxic assets.

"Right now critical parts of our financial system are damaged," Mr Geithner said.

"Instead of catalyzing recovery, the financial system is working against recovery, and that's the dangerous dynamic we need to change," he added.

Leading US stock indexes fell after Mr Geithner started his speech on the new plan.

Transparency and accountability

Mr Geithner said the new plan should unfreeze the credit market, strengthen banks and "provide critical aid for homeowners and for small businesses".

"And as we do each of these things, we will impose new higher standards for transparency and accountability," he added.

He said that the public-private investment fund to buy up risky assets will be seeded with government money and could be expanded to $1 trillion.

The expanded Federal Reserve lending program will support lending to small businesses and consumers, including credit card lending and student loans, and also cover the troubled commercial real estate market.

The government also will give banks access to additional capital from the Treasury's original $700bn bail-out fund "as a bridge to private capital".

But that will come with strict terms, including full disclosure and limits on executive pay.

"This assistance will come with terms that should encourage the institutions to replace public assistance with private capital as soon as that is possible," said Mr Geithner.

Crisis 'not over'


We don't know yet if we'll need additional money, or how much
President Obama
Q&A : Bank bail-out plan

President Obama said on Monday that Mr Geithner's plan would be a template for "restoring market confidence".

"The credit crisis is real, and it's not over," added the president.

President Obama has so far said it is too early to say whether the $700bn bank bail-out scheme, officially called the Troubled Asset Relief Program (Tarp), will need more funds.

"We don't know yet if we'll need additional money, or how much additional money we'll need," he said.

Tarp was passed by President Bush in October, whose administration spent the first $350bn.


Meanwhile, President Obama's wider economic stimulus plan is facing a crucial vote in the Senate. This is expected to cost an additional $800bn.


omfg, this is just madness now, bailout after bailout after bailout???????
When is it going to stop?
Whoever thinks these fuckers are not the 1s who are causing this for what there doing now is a fucking loon.
So from 200 billion dollars(everyone goes on as if that's peanuts these days), so from 200 BILLION to 1.5 FUCKING TRILLION DOLLARS, ASWELL AS THIS 800 BILLION STIMULUS PACKAGE.
Fucking idiots, you guys are fucked now, that is a cert.
What a bunch of wankers, if this gets past congress you can iss, you're rights and futures straight away.
Man you should be against this shit, fucking twats.

I'm so sorry for the language in here but this had got my blood boiling.
How can you Americans sit there and let this happen?
So 1.5 trillion + 800 billion.
Omg, get off you're asses, there so close now to t totalling every single person.
It's not good this, not good at all.
You need to move and move quick.

http://news.bbc.co.uk/1/hi/business/7880969.stm

[clint_giles]

but american idol is on tv..or maybe you like dancing with the stars?
or maybe its the bachelor? or even daytime soaps



why would they waste there time on the banks?

[ginge51]

but american idol is on tv..or maybe you like dancing with the stars?
or maybe its the bachelor? or even daytime soaps



why would they waste there time on the banks?
I know exacley what you mean by pop idol is on tv, everyone is not ased , there sat an there asses so much doing nowt it's a fucking joke man.
Wake up for fuck sake.
What are you talking about wasting my time on the banks?
Listen, i got laid off work in October due to this manufactured financial crisis.
Why waste my time on the banks?
Err because they are rinsing everyone's pensions for them selves maybe, everybody is losing there homes due to there greed.
Maybe that;'s enough for you?
There's much, much more that there doing to seize freedoms of everyone.
They want everyone in uproar so they can continue what there agender is.
What happens to these people who are doing this?
Like they've just done in the uk, they say "OH SORRY EVERYONE".
They've destroyed so many peoples lives and futures, that they get away with saying "OH SORRY EVERYONE:.
It's a fucking scam man, they should be executed for what there doing to everyone.
What happens when the economy is in such a bad state, which it's in now that there is nobody in a job to deliver the food to everyone in the morning?
There's a food shortage, everyone will be rioting.
It's around the corner, were in the shit now big time.

[kappy0405]

hmmm.. =/ someone missed the sarcasm there.. :D

@topic.. By now, even for those 'unawake', it should be obvious that there are only 2 possible scenarios regarding this crisis.

1) The private bankers are deliberately crashing the $$, and all us nutjobs were right, or

2) Washington is filled with the dumbest, most idiotic harvard and yale grads to have ever existed... & that doesn't even make sense.

It should be obvious that there is a conspiracy, yet again.

alls we can do now is sit back & wait for the final solution.

[ginge51]

hmmm.. =/ someone missed the sarcasm there.. :D

@topic.. By now, even for those 'unawake', it should be obvious that there are only 2 possible scenarios regarding this crisis.

1) The private bankers are deliberately crashing the $$, and all us nutjobs were right, or

2) Washington is filled with the dumbest, most idiotic harvard and yale grads to have ever existed... & that doesn't even make sense.

It should be obvious that there is a conspiracy, yet again.

alls we can do now is sit back & wait for the final solution.

And you know what that is right?
Food shortages, riots, martial law.
Man this baby's about to explode!
Has anybody seen the market data today?
Believe me i'm no ecconemist but today the us lost 330 000 points.
The slump is on.
These bailouts must "NOT " be past in congress.
If the 1.5 trillion 1 passes you watch things implode.
Man I'm so mad about this i want to personally asasinate the lot of them, but that would be extremely hard lol.
On my own anyway.

[januspolanski]

Has Ron Paul commented on this yet?

[illuminatiman]

Has Ron Paul commented on this yet?

No one listens to him!! he talks sense and is passioante but the other senators look at him as if he is some kind of kook!!! i wish Britain had a politician like him! :(

[clint_giles]

hmmm.. =/ someone missed the sarcasm there.. :D

@topic.. By now, even for those 'unawake', it should be obvious that there are only 2 possible scenarios regarding this crisis.

1) The private bankers are deliberately crashing the $$, and all us nutjobs were right, or

2) Washington is filled with the dumbest, most idiotic harvard and yale grads to have ever existed... & that doesn't even make sense.

It should be obvious that there is a conspiracy, yet again.

alls we can do now is sit back & wait for the final solution.


so god damn true dude....

highly educated piss ants that live in excess and tell us that were in a crisis
because they messed up.while the gently take in your assets and sell for profit.

[mrmoney]

This is a joke. They do a new one every month now.... The US is being turned into a third world country through debt.

[themime]

I've seen this trick before.

Think of a number between 6 and 8.

Multiply it by oh say 100 billion,

Add 1.5 trillion and then,

Take away the number you first thought of,

and what are you left with?


That's right Socialism, well done.

[anthony65]

Apparently they will update the debt clock in Times Square so that it can cope with recording a quadrillion of debts. :)

http://en.wikipedia.org/wiki/United_States_public_debt#Debt_clocks

Quadrillion?

1,000,000,000,000,000 (one thousand million million; 1015; SI prefix peta-) - for all short scale countries - increasingly common meaning in English language usage

Just in case this really heat up, here is a handy table...

http://en.wikipedia.org/wiki/1,000,000,000,000,000

As you can see, we are still a long way from a centillion, but I don't see zillion! :(

[lost_in_translation]

hmmm.. =/ someone missed the sarcasm there.. :D

@topic.. By now, even for those 'unawake', it should be obvious that there are only 2 possible scenarios regarding this crisis.

1) The private bankers are deliberately crashing the $$, and all us nutjobs were right, or

2) Washington is filled with the dumbest, most idiotic harvard and yale grads to have ever existed... & that doesn't even make sense.

It should be obvious that there is a conspiracy, yet again.

alls we can do now is sit back & wait for the final solution.

I wish i could say they are dumb... but they know exactly whats going on..

[oiram]

Why people don't get it; there is no money going anywhere they only bombard you with stupid propaganda.

There is no real money it's all just talk to make you feel committed & enslaved.
Oh yes the big cooperations are getting rid of workers because they are a part of the scam & have to follow there masters instructions.
If they don't follow they usually have car accidents you see how easy this works!

There is No money don't you understand ..... it's not real just talk.

That's why they will never give anyone the information where any of there talked money goes.

It is just a big computer game & false propaganda.

It always was this way just look at the charts it's a scam & hoax.

There entire monkey business & Wall Street is only build on trust, propaganda & numbers on paper & a computer screen.

No I am not joking; you will see wait & the future will give you the truth then you can come back to the post I just made right now.

Research it think & use your logic.

Is there anyone else out there who figured this out & thinks like me.

Here is the freaking Chart look at the dark strip on the bottom this is real paper money & it's still only printed paper the rest is just numbers on paper that's what people murder for freaking paper & numbers on paper. Look at the chart for 10 days think & think again & one day the answer will hit you on the head. If we all together say tomorrow we don't believe in US$ anymore .... Rothschild can pack his bags & can find another planet to sell his scam.
Why did nobody ever worked out the scam & told us. Because you hollow heads don't understand that all of them; yes all of them are working for the same master scam. And murdering is there solution to shut anyone up who tries to talk. Yes they all educated you will say yes educated to follow the scam knowingly or by brainwashing or consent by getting fame and the money which we are giving value by our stupidity not knowing about there scam for the last 1000 years.

Get rid of the Government & the master blaster & we can create a new system for all not only for criminals loving control over others.

Economical collapses freaking bullshit it's created by design & can be reversed tomorrow but it's not part of the slave-drivers plan.

Don't you understand this?

Then we just create a new system & all can have as much paper or numbers as they need. It's only a control system & the controllers are the problem.
They could give everyone money or units of value without any interest. No Taxes No medical costs no inflation or deflation interest rise interest false. It's all bullshit created & controlled by maniacs.

Yes use your freaking logic. Evolve & create Paradise for all with no more discrimination same rule for all same condition for all.

Don't say I am a idiot I am not; the idiots are all which don't see & understand this mega scam. The once which know are not telling you because they part of it.
We are 90% they are 10% so where is the problem .... Oh ....well they have nukes paid from our taxes .... so make my day blow as all to kingdom cam.
They will do it anyway if we don't react & stop them .... this are the End Times .... but for whom this is the question?

Did God not promise you Paradise well it's right in front of you & all you need to do is make a choice & refuse you're present rulers.
They like to fight well this shows you who you're enemy really is & always was & if they start a fiscal fight you have the right to self defend your self lets hope 90% are on our side. All we need to do is demand not fight!
http://upload.wikimedia.org/wikipedia/en/thumb/d/d0/Euro_money_supply_Sept_1998_-_Oct_2007.jpg/500px-Euro_money_supply_Sept_1998_-_Oct_2007.jpg

They are not intending to fix anything they created this entire shit by design to take over full control over the entire planet by creating a cashless system controlled by one computer system & some super maniacs which give the instruction which even will know when you go for a shit by a push of a button!

This is no science-fiction movie this is real.

Is this the choice you make for your future life's & your children's future well I am not standing for this shit you better kill me then.

You people can keep listen to your Politicians shit talk; I promise you all things will only get worse every day more & more things will happen all over the world they are on final solution move.
It will be up to us all to wake up now & stop all this before to many people get murdered for nothing more then madness & a super scam which is in planning for more then 100 years.

Don't ever except any new money they will create for you!
If you do this will guarantee your total enslavement!
We the Public have to create the next new system not them!
Remember my words the time is near that they will do exactly what I just say now.
They will push the Unemployment to 30% then they will come with there new scam.
All you need to do is say No; no matter what! They are not the solution they are the problem of all.

Any comments or questions or some name callings & insults no problem I am used to it.

Anybody worked this scam out yet?

[sophia_h]

`

The new Treasury secretary's bailout could waste hundreds
of billions of dollars and still not fix the financial sector.



Geithner's Folly: The Bank Rescue Plan Is a Disaster in the Making

By Brad Reed, AlterNet. Posted February 11, 2009.


The financial bailout plan unveiled by Treasury Secretary Timothy Geithner yesterday reminded me of the time my cousin Jethro Billy Rex Reed came over to my house and offered to pay me $50 for the privilege of scraping roadkill off my street.

"Well gee," I said to Jethro. "What are you going to do with all that roadkill?"

"I'm gonna sell it for eatin'," he said proudly. "The market for grilled flattened squirrel is booming right now!"

"But Jethro, there ain't no sane person out there that'll pay any price for crushed squirrel meat!" I said. "What's going to happen if no one buys it?"

"That's the best part," he said. "I figure that if no one buys, then my dad will pay me at least $100 to clean all the roadkill out before it stinks up our basement."

Much like Jethro's stock of roadkill, toxic mortgage-backed securities are now stinking up our financial system and Geithner seems to be willing to pay a premium to just get rid of them. A key part of the plan he unveiled is to have the government create a public-private investment fund that will use government dollars to insure private investors against losses they could suffer from purchasing those bad assets if the economy keeps heading south.

Geithner says that letting private investors bid on these assets -- with government guarantees against large losses -- will allow the market to define concrete prices for them and thus "avoid a program that has government overpaying for a bunch of financial assets."

The trouble with this, of course, is that many of these assets will never be worth what the banks will accept for them. Economist Dean Baker, co-director of the Center for Economic and Policy Research, told me that the worst of these assets "have lost value because they rest primarily on underwater mortgages." The only way these assets will ever regain the value they've lost over the past few years, says Baker, is in the unlikely event that the housing bubble makes a comeback.

Economist James K. Galbraith told me that the government is simply in denial if it thinks it can ever recoup the losses it will inevitably take by paying insurance for those "toxic" assets. Instead of trying to sell them off in an attempt to hide the depth of the banks' losses, Galbraith says that the government should instead acknowledge that they are insolvent.

"If someone within the Government Accountability Office does their due diligence on these assets, they'll find that they're not marketable for a reason," he told me. "Many of these securities were backed by mortgages that had sloppy and inadequate documentation."

Another problem with Geithner's plan is that it leaves bank executives and shareholders relatively unscathed. If government dollars are used to prop up bad asset values and thus protect shareholders from being wiped out, then future banks will have more incentive to invest in risky assets, safe in the knowledge that the government will help pick up the tab and leave their executives intact when the next bubble pops.

"This is the issue of moral hazard," says Hale Stewart, a tax attorney and former bond broker who writes frequently about economics at the Huffington Post. "By bailing out banks, the government is rewarding bad behavior. The alternative is to let the banks go broke and probably take the country down with them."


( no, there IS another alternative that worked successfully in Germany in 1933. National Socialism, the best of capitalism and the best of socialsim but without the tyranny of either. It would need a brilliant mind with knowledge of economics and history such as Ron Paul. S. )


But although letting the banks completely fail is an unacceptable outcome, alternatives to the Geithner plan do exist. While there is no happy solution to a massive financial crisis, many economists have concluded that the United States will have to nationalize its insolvent banks. While that initially involves a government takeover of the banks, Baker points out that it's actually a more market-oriented solution than artificially propping up the value of bad assets and shielding bank shareholders from losses. ( NS ! S.)

Baker adds that the government takeover of the banks isn't permanent: rather, the government removes the bad assets from the bank before reorganizing it and then selling it to the private sector as a healthy bank.

( NS would keep one NATIONALIZED bank, The Peoples Bank with
local AFFILIATES, partnered with the local community
Know your banker personally as you grew up with hir. S. )

"The normal way to deal with a bad bank is to wipe out the shareholders, fire most of the executives, reorganize it, soak up the assets that are nonperforming and sell them over time," says Stirling Newberry, an economics writer at the Agonist. The end goal of any bank reorganization plan, he notes, should be to eventually "merge the bank with a healthier bank."

Nouriel Roubini, the New York University economist who correctly predicted the current financial crisis long before many economists saw it as a serious threat, recently endorsed nationalizing banks while responding to reader questions over at the Financial Times' Web site.

"Nationalization may be a more market-friendly solution," wrote Roubini, who also noted that the nationalization model was successfully used by Sweden during its banking crisis in the early '90s. "It creates the biggest hit for common and preferred shareholders of clearly insolvent institutions and … it provides a fair upside to the taxpayer."


The biggest danger in not nationalizing banks, Roubini continues, is that many of the banks will become "zombies" that are insolvent but are still being animated by taxpayer money. Without restructuring, these zombie banks would continue to be run poorly, and frozen credit markets would be unlikely to thaw.

So if the nationalization solution presents a better alternative to the Geithner plan, why isn't it being employed?


There are two plausible explanations, and both are depressing. The first explanation is the most cynical one: that Geithner is protecting his friends within the banking industry from suffering the consequences of their poor decision-making. Baker sums up this argument succinctly: "Bankers are powerful supporters of the Democratic Party, and therefore [they think] it is good to help them."


The other explanation is that the Obama administration is so determined to transcend traditional partisan politics that it has bought into the false notion that America is an intractably "center-right" nation that will not tolerate massive government intervention into private institutions. President Barack Obama gave credence to this explanation during a recent interview with ABC News.


"Obviously, Sweden has a different set of cultures in terms of how the government relates to markets, and America's different," said Obama, explaining why the U.S. was not following the Swedish model for financial rescues. "What we've tried to do is to apply some of the tough love that's going to be necessary, but do it in a way that's also recognizing we've got big private capital markets, and ultimately that's going to be the key to getting credit flowing again." ( NOT ! S.)


A week earlier, Geithner was even clearer about the administration's priorities when he said: "We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

If Obama is sincere about this, then this is indeed a discouraging development. The president who once promised that he'd bypass ideology in favor of "what works" is sacrificing a solution that has worked in the past on the altar of "center-right" ideology.


Brad Reed is a writer living in Boston. His work has previously appeared in the American Prospect Online, and he blogs frequently at Sadly, No!.


http://www.alternet.org/workplace/126354/


.

[oiram]

The Money Masters
Also watch FIREWALL: http://newsbrowser.org/firewall/ "The powers of financial capitalism had a far-reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole...Their secret is that they have annexed from governments, monarchies, and republics the power to create the world's money..." THE MONEY MASTERS is a 3 1/2 hour non-fiction, historical documentary that traces the origins of the political power structure that rules our nation and the world today. The modern political power structure has its roots in the hidden manipulation and accumulation of gold and other forms of money. The development of fractional reserve banking practices in the 17th century brought to a cunning sophistication the secret techniques initially used by goldsmiths fraudulently to accumulate wealth. With the formation of the privately-owned Bank of England in 1694, the yoke of economic slavery to a privately-owned "central" bank was first forced upon the backs of an entire nation, not removed but only made heavier with the passing of the three centuries to our day. Nation after nation, including America, has fallen prey to this cabal of international central bankers.

http://video.google.com/videoplay?docid=-515319560256183936&hl=undefined

[white knight]

It's very easy to payoff politicians...

If you were a member of Congress for instance, would you take cash/nice house to just shut your mouth and play the game?...I bet half the people on this forum would!

The problem here is greed and selfishness.

The good and decent people have absolutely nothing to worry about, the weak minded one's will face many hardships, both spiritual and physical.

[jmmk]

I live in Upstate NY. This morning's paper-State could very well go bankrupt
in 18 months if politicians in Albany do business as usual-projected deficit of
50 billion by next year for NY State. Can the Federal Govt. bail out a State
Govt.? It's only 50 billion! Get in line!!!

[whiterain]

dont know if this has been posted yet
http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=aGq2B3XeGKok real bailout cost 9.7 trillion in the US alone

the 'we just wanted to pick a really bug number' wasnt even close